FFTY pops to highest close since October 3, 2018
Innovator IBD 50 ETF (FFTY) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, FFTY ended the month 7.38% higher at 36.96 after gaining $0.20 (0.54%) today on low volume. Today's close at 36.96 marks the highest recorded closing price since October 3, 2018. Trading up to $0.44 lower after the open, the ETF managed to reverse during the session as bulls took control ending the day above its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (FFTY as at Jul 31, 2020):
Friday's trading range has been $0.53 (1.44%), that's below the last trading month's daily average range of $0.76. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for FFTY.
One bearish candlestick pattern matches today's price action, the Hanging Man. The last time a Hanging Man showed up on July 10th, FFTY lost -3.76% on the following trading day.
After trading down to 36.43 earlier during the day, the market bounced off the key technical support level at 36.52 (S1). The failure to close below the support might increase that levels importance as support going forward.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 37.12, upside momentum could speed up should FFTY ETF be able to break out to new highs for the year.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bullish Intraday Reversal" stand out. Its common bullish interpretation has been confirmed for FFTY ETF. Out of 218 times, FFTY closed higher 58.26% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 60.09% with an average market move of 0.28%.